Microsoft Posts Huge Numbers in Latest Quarter

Microsoft today announced that it earned a net income of $15.5 billion on revenues of $41.7 billion for the quarter ending March 31. Those are monster increases of 44 percent and 19 percent, respectively.

“Over a year into the pandemic, digital adoption curves aren’t slowing down,” Microsoft CEO Satya Nadella said. “They’re accelerating, and it’s just the beginning. We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.”

Looking at Microsoft’s major business units, Intelligent Cloud was the biggest, with $15.1 billion in revenues, a YOY gain of 23 percent. Azure revenue exploded by 50 percent, while Server and cloud products revenues increased by 26 percent. Enterprise Mobility saw 38 percent growth in its user base to over 174 million seats.

Productivity and Business Processes was Microsoft’s second-biggest business in the quarter, with $13.6 billion in revenues, a gain of 15 percent. Office Commercial revenues jumped 14 percent, while Office Consumer revenues were up 5 percent; Microsoft 365 for consumers saw its subscriber base jump 27 percent to 50.2 million in the quarter.

Finally, More Personal Computing delivered a respectable $13 billion in revenues in the quarter, a gain of 19 percent. Windows revenues from PC makers grew 10 percent overall, with non-Pro revenue up 44 percent and Pro revenue down 2 percent. Xbox revenue overall grew 50 percent and Xbox content and services jumped 34 percent. Surface revenue was up 12 percent.

I’ll take a deeper dive in a special edition of Short Takes tomorrow.

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Conversation 31 comments

  • bluvg

    28 April, 2021 - 1:45 am

    <blockquote><em><a href="#625354">In reply to locust_infested_orchard_inc.:</a></em></blockquote><p>I'm not an Apple fan, but I really don't understand the over-the-top reactions to the notch. It just doesn't seem that big of a deal to me.</p>

    • Cardch

      28 April, 2021 - 1:57 am

      <blockquote><em><a href="#625356">In reply to bluvg:</a></em></blockquote><p>Agreed. It is a total non-issue. You get used to it within 30 seconds of use and never think about it again. That some people use it as a stick to beat Apple 4 years down the line says more about them than the technology I would say. I mean, no one mentions Clippy any more :)</p>

    • Paul Thurrott

      Premium Member
      28 April, 2021 - 9:18 am

      It might be related to the fact that all major Android flagships don’t even have bezels, let alone a giant black piece of plastic occluding a large part of the display.

  • spiderman2

    28 April, 2021 - 3:42 am

    <blockquote><em><a href="#625354">In reply to locust_infested_orchard_inc.:</a></em></blockquote><p>you're talking about the fashion brand that sell ovepriced tech toys?</p>

    • Greg Green

      28 April, 2021 - 9:07 am

      <blockquote><em><a href="#625361">In reply to spiderman2:</a></em></blockquote><p>And they make better laptop cpus and gpus than intel. Quite good for a company that so many love to senselessly hate.</p>

  • Jim Lewis

    28 April, 2021 - 5:18 am

    <blockquote><em><a href="#625354">In reply to locust_infested_orchard_inc.:</a></em></blockquote><p>On the notch, etc., after years of using Windows and Android devices, I just like a device that runs a lot cooler and doesn't set itself on fire when you try to use it (while killing its battery, too). And my Apple watch is certainly a lot more durable than the Microsoft Band, which started self-destructing on me about 13 months into use just after the warranty expired. Windows on Arm vs. the Mac M1 is another example of where being one of the MS frolicking faithful gets you…. And tell me about how Android and Windows devices dominate the tablet market when you're looking for a very light portable device (well, there's the Chromebook but all my relatives and their spouses seem to be running around with iPads) – I'm still hanging on to my 2015 Asus VivoTab Note 8! Sigh! Runs Win10 amazingly well but kinda slow. When is MS or its associated OEMs gonna produce something more modern that's really cut out for the job?! I would enjoy being one of the MS frolicking faithful with such a sized device (an 8-in tablet) that really performed. Instead we get the Surface Neo, now in 2022 …. And then there's the Duo 2, Oops! It's an Android device … And then there are my several Cortana Invoke devices and original Surface headphones, now just pure audio devices, not even connectable to Cortana as an Office 365 productivity tool – great strategic planning there from MS, almost in Surface RT territory (still have mine as a collector's item).</p>

  • MoopMeep

    28 April, 2021 - 7:01 am

    <p>they made a lot of profit…. they could help the third party developers and take less of a cut at the Xbox store….. they don’t need to take 30%. The only way you can sell games on Xbox is through Microsoft….. they are like a monopol.</p>

    • Paul Thurrott

      Premium Member
      28 April, 2021 - 9:17 am

      There is where size and market matter. Xbox isn’t one of two ways in which people can play videogames, and it’s not even in the top three or four by market size. Likewise, the total installed base of Xbox consoles is under 100 million, probably half that, and that compares to several billion smartphones. So there’s no market power for it to abuse.

      • MoopMeep

        28 April, 2021 - 7:28 pm

        <blockquote><em><a href="#625379">In reply to paul-thurrott:</a></em></blockquote><p>But you have to factor that Xbox games are significantly more expensive than mobile phone apps. So Microsoft would get at least 15 dollars per game (and that’s only 25% of 60 dollars)and apple and google would probably at most get a dollar? Let’s also figure that mobile devices get upgrade every few years and an Xbox may take longer to be upgraded since new consoles only really come out every 7 years. It just sounds hypocritical… apple is bad charging 30% cuz some made up reason but other companies are ok cuz some other reason. </p>

        • Paul Thurrott

          Premium Member
          29 April, 2021 - 11:45 am

          Apple makes a lot more from its App Store than Microsoft does from Xbox games. So whatever.

  • Greg Green

    28 April, 2021 - 9:08 am

    <blockquote><em><a href="#625354">In reply to locust_infested_orchard_inc.:</a></em></blockquote><p>So much of your life seems to be ruled by apple. You should just let go of this obsession.</p>

  • Greg Green

    28 April, 2021 - 9:09 am

    <p>Why such an increase in net income? That seems quite out of step with the revenue increase.</p>

    • cavalier_eternal

      28 April, 2021 - 1:30 pm

      <blockquote><em><a href="#625376">In reply to Greg Green:</a></em></blockquote><p>Their products with higher margins were the one’s that grew the most. </p>

  • Paul Thurrott

    Premium Member
    28 April, 2021 - 9:19 am

    Off-topic comments aimed solely at making others upset are just deleted.

  • matsan

    Premium Member
    28 April, 2021 - 10:13 am

    <p>…and the market rewarded their stock with a 3% drop…</p>

    • cavalier_eternal

      28 April, 2021 - 1:28 pm

      <blockquote><em><a href="#625392">In reply to matsan:</a></em></blockquote><p>Markets are forward looking so the performance over the first three months of the year were already baked into the stock price. It’s dropping because while Microsoft did incredibly well the market had actually expected them to do better than they did. One can certainly say that expectation was unreasonable and I’d totally agree but it was there and it was in the price. So you are seeing the price come down to represent a more reasonable expectation. </p>

      • locust_infested_orchard_inc.

        30 April, 2021 - 1:52 am

        <blockquote><em><a href="#625463">In reply to cavalier_eternal:</a></em></blockquote><p>Your assessment for $MSFT falling after its reporting is correct – but only in your first sentence.</p><p><br></p><p>Your subsequent sentences are wrong, and actually contradict your first sentence.</p><p><br></p><p>Microsoft earnings beat market expectations, and as you correctly state, the excellent earnings were already factored in the stock price over 2021.</p><p><br></p><p>Investors saw this as an opportunity to do a spot of profit taking, on the back of great numbers from Microsoft.</p><p><br></p><p>Remember, a falling stock price is not necessarily indicative of a poor performing company.</p><p><br></p><p>Apple shares suffered the same fate, as its shares dipped upon earnings announcement. Once again, investors doing profit taking.</p>

    • locust_infested_orchard_inc.

      30 April, 2021 - 1:54 am

      <blockquote><em><a href="#625392">In reply to matsan:</a></em></blockquote><p>Allow me to remind you that Apple's shares fell too upon releasing their financials.</p><p><br></p><p>The reason that both $AAPL and $MSFT fell was to due profit taking by investors.</p>

  • toukale

    28 April, 2021 - 2:10 pm

    <blockquote><em><a href="#625393">In reply to lvthunder:</a></em></blockquote><p>Stop with your common sense, it won't fit the narrative. Microsoft is a trillion dollar company, sony, etc… multi-billion dollar companies the hypocrisy is shameful.</p>

  • Andi

    28 April, 2021 - 3:08 pm

    <blockquote><em><a href="#625393">In reply to lvthunder:</a></em></blockquote><p>App Store has problems because it's the largest player of a two player market. Xbox and PS and Nintendo and PC Gaming are together dwarfed by mobile gaming. It's not just exclusivity it's also market size.</p><p><br></p><p>The 2nd argument is the importance of the device. Steve Jobs introduced the iphone as a multi purpose device, a 3 in 1 if I remember correctly. It has grown to be the ULTIMATE PC, the most important device in our connected lives. The gaming console is a specialized niche entertainment instrument. They do not compare. </p>

    • locust_infested_orchard_inc.

      30 April, 2021 - 1:41 am

      <blockquote><em><a href="#625498">In reply to Andi:</a></em></blockquote><p>You stated, and I quote you, "<em>It [iPhone] has grown to be the ULTIMATE PC</em>".</p><p><br></p><p>What are you on ? You having a laugh. The file management on iØS is abysmal, and leaves a lot to be desired.</p><p><br></p><p>File management done right is absolutely critical for any OS to be even considered to be hailed as "<em>the ULTIMATE PC</em>". That reason alone (though there are numerous others), for both the iNotch and iFad being taunted as being 'toys' by those who appreciate the shortcomings of Apple's devices.</p><p><br></p>

  • saint4eva

    29 April, 2021 - 1:51 am

    <p>Over 1.3 billion Windows 10 </p>

    • Paul Thurrott

      Premium Member
      29 April, 2021 - 11:42 am

      That wasn’t in the earnings announcement. But I mentioned it in Short Takes.

      • saint4eva

        30 April, 2021 - 4:37 am

        <blockquote><em><a href="#625666">In reply to paul-thurrott:</a></em></blockquote><p>Super ?</p>

  • John Craig

    29 April, 2021 - 5:01 am

    <p>Good for them. I just received an email from LinkedIn detailing some rather steep price increases for the professional services package. </p><p><br></p><p>Now, I'm not saying that Microsoft are greedy bastards, who are giving Apple a run for thier money in terms of cash grabbing. </p><p><br></p><p>All I'm saying is that Microsoft are greedy bastards, who are giving Apple a run for thier money in terms of cash grabbing. </p>

    • Paul Thurrott

      Premium Member
      29 April, 2021 - 11:36 am

      Guys. Seriously. They’re companies. They’re literally designed to maximize profitability. They’re not “bastards” or “cash grabbing,” they’re just businesses.

      • locust_infested_orchard_inc.

        30 April, 2021 - 1:15 am

        <blockquote><em><a href="#625664">In reply to paul-thurrott:</a></em></blockquote><p>Indeed. Bravo. However Paul, you ought to caveat your comment of, and I quote you, "<em>They're not "bastards" or "cash grabbing," they're just businesses.</em>", that your comment whilst true for most businesses, most certainly excludes Google, Facebook, adult media companies, etc. The said companies are indeed "bastards".</p><p><br></p><p>I'm sure it wouldn't have gone unnoticed how I categorised Google and Facebook with the pernicious, demeaning, and degenerate adult media entities.</p><p><br></p><p>Just watching Mark Zuckerberg, Sundar Pichai and Jeff Bezos responding in the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law in 2020, just shows how corrupt Facebook and Google.</p><p><br></p><p>Mark Zuckerberg's finest moments was with his comment in response to the master tactician, Alexandria Ocasio-Cortez, when asked in October 2019 whether "lies and misinformation would be taken down from Facebook", to which Zuckerberg basically responded that such information shall remain on the defiled platform.</p><p><br></p><p>Facebook wilfully engages in the bastardisation of the truth. Mark Zuckerberg's face says it all (many, many years ago, I believed that the facial expression he does was a sign of naïvety, but in the past couple of years, I released I badly misjudged – the facial expression is one of total disbelief of how Zuckerberg is managing to make billions from mis- and dis-information without being held to book).</p><p><br></p>

        • bsobotta

          30 April, 2021 - 5:57 pm

          <blockquote><a href="#625761"><em>In reply to locust_infested_orchard_inc.:</em></a><em> Couldnt have said it better myself. </em></blockquote><p><br></p>

      • bsobotta

        30 April, 2021 - 5:56 pm

        <blockquote><a href="#625664"><em>In reply to paul-thurrott:</em></a><em> Exactly. If you dont like the service go somewhere else. They employ people who also benefit from these companies. Capitalism makes the world go round.</em></blockquote><p><br></p>

        • Paul Thurrott

          Premium Member
          01 May, 2021 - 8:38 am

          I pretty much disagree with all three of those sentences.

  • bsobotta

    30 April, 2021 - 5:58 pm

    <p>I moved on from Microsoft services after the windows phone fiasco. Never again. </p><p><br></p><p>That being said, good for them.</p>


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